Virtu Financial, Inc. Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Key Financial Highlights (Q3 2020)

  • Adjusted EPS: $0.81, up roughly 4x from Q3 2019.
  • GAAP Net Income: $200 million.
  • Adjusted Net Trading Income (NTI): $362 million or $5.7 million/day, up 45% YoY.
  • Market Making Adjusted NTI: $257 million or $4.02 million/day, up 82% YoY.
  • Execution Services Adjusted NTI: $105 million or $1.64 million/day, down 3% YoY (impacted by sale of MATCHNow).
  • Adjusted EBITDA: $249 million, up 139% YoY.
  • Adjusted EBITDA Margin: 68.7%.
  • Shareholder Return: Declared $0.24 quarterly dividend; authorized new $100 million share repurchase program.

Year-to-Date Performance (First 3 Quarters of 2020)

  • Adjusted Net Trading Income: $1.8 billion or $9.6 million/day.
  • Adjusted EPS: $4.58.
  • Price Improvement Provided to Retail Investors: $959 million.
  • Debt Reduction: $388 million in prepayments; current total debt at $1.67 billion; leverage ratio at 1.2x trailing 12-month adjusted EBITDA.

Strategic Initiatives & Growth

  • Options Growth: 374% increase in average daily adjusted NTI YoY.

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Operator: Good morning, and welcome to the Virtu Financial 2020 Third Quarter Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Debbie Belevan. Please go ahead. Debbie Belevan: Thank you, operator, and good morning, everyone, and thanks for joining us. Our third quarter results were released this morning and are available on our website. On this morning's call we have Mr. Douglas Cifu, our Chief Executive Officer; Mr. Joe Molluso, our Co-President and Co-Chief Operating Officer; and Sean Galvin, our Chief Financial Officer. They will begin with some prepared remarks and then take your questions. But first a few reminders. Today's call may include forward-looking statements, which represent Virtu's current belief regarding future events and are, therefore, subject to risks, assumptions and uncertainties, which may be outside the Company's control. Please note that our actual results and financial condition may differ materially from what's indicated in these forward-looking statements. It's important to note that any forward-looking statements made on this call are based on information presently available to the Company and we do not take -- undertake or update any revised forward-looking statements as new information becomes available. We refer you to d

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